Old Age Security (JHT): Definition, Benefits, Beneficiary Requirements, and Calculations

No one can guarantee that you will have enough money in old age. However, one of the best ways to get around this is through an Old Age Guarantee (JHT) letter.

In short, JHT is a program that can guarantee you will have money when you retire.

However, what is the procedure and who can take JHT. Here we have a complete explanation for you!

What is JHT (Old Age Security)?

According to PP No. 46 of 2016 JHT in relation to the implementation of the elderly program is a financial compensation that is paid once when the participant reaches retirement age, dies or has permanent total disability.

This program compensates for loss of income due to death, disability or old age. So your money is guaranteed if you join this program.

JHT uses a mandatory retirement savings scheme. So every month must be paid. Usually the company automatically uses your monthly salary to pay for the JHT program costs. Therefore, the rules for submitting JHT funds for 2022 have been slightly modified.

This change is contained in Permenaker 2022 No. 2, which deals with payment procedures and eligibility for pension benefits. Secretary of Labor Ida Fauziyah officially signed this decree on 2 February 2022.

Article 3 states that JHT benefits can only be provided if the BPJS Employment (BP Jamsostek) participant is 56 years old. However, the Minister of Manpower withdrew the regulation. Quoted from CNN Indonesia, the regional regulation has now returned to the previous regional regulation, Permenaker Number 19 of 2015

That way, the liquid JHT requirements at the age of 56, death or permanent disability are cancelled.

JHT benefits

In fact, the benefit of the old guarantee program is that the amount of money returned is equal to the cost charged and the result of the construction. The results of this development are at least the same as the average counter rate deposits at state-owned banks.

So, as previously mentioned, there has been a change in the regulations for paying JHT benefits.

The government announced Permenaker Number 2 of 2022. As a result, JHT funds can only be paid if the official participant is 56 years old, has permanent total disability or passes away. With the repeal of this regulation, JHT funds can now be paid immediately in cash if participants reach the age of 56, resign, resign or are officially unemployed after 1 month.

This is indicated and explained in articles 5 and 6 of the Decree of the Minister of Manpower No. 19 of 2015.

Termination of JHT BPJamsostek can be done online on the official BPJS Employment website.

JHT Recipient Requirements

There are various criteria that must be met by participants, as written on the BPJS Employment page, namely as follows.

1. Participants receiving wages who work for employers other than state officials

• All workers both working for companies and individuals

• Foreigners who work in Indonesia for more than 6 months

2. Participants are not wage earners

• Employer

• Employees outside work/independent relationships

• Workers who do not receive wages other than point 2

• Workers who are not wage earners other than workers outside of work/self-employment relationships

Calculation of JHT

Reporting from the BPJS Employment page, the amount of Old Age Security (JHT) contributions is as follows.

1. Wages

• 5,7% of wages (2% workers, 3,7% employers)

• The basic wage is a month's wage (basic wage & fixed allowance)

• Total JHT contributions = 5,7% x IDR 5.000.000 = IDR 285.000/month

• The JHT contribution you pay = 2% x IDR 5.000.000 = IDR 100.000/month

• JHT contributions paid by the company = 3,7% x IDR 5.000.000 = IDR 185.0000/month

2. Not a wage earner

Payment is based on a certain amount specified in PP attachment I. Participants choose a list of payments according to their respective incomes.

Basically, Old Age Security is a program organized by BPJS Employment. This program can have a positive effect on old age or retirement.